Senate Inquiry Into Regional Inequality

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Senate Inquiry Into Regional Inequality Lockyer Valley Regional Council Submission to the Senate Economics References Committee Inquiry into Regional Inequality 30 April 2018 Introduction This Submission has been made by the Lockyer Valley Regional Council to the Senate Economics References Committee (the Committee) to: • highlight the very real inequalities that have been identified • give examples from our regional context, and to • demonstrate the at times seemingly ad hoc approach to policies. These policies are failing to address these inequalities and are therefore failing regional communities. It is beyond doubt that regional inequality exists. The Socio-Economic Indexes for Areas (SEIFA) developed by the Australian Bureau of Statistics clearly demonstrates this inequality. Regional and remote Australia has very real imbalances. What is less clear is whether or not there is a genuine desire by Commonwealth and State governments to address this imbalance and whether strategies can be identified and implemented in any meaningful way. The SEIFA statistics demonstrate that regional inequality increases outside our capital cities. The statistics also reveal a common misconception - that the further you proceed from the coast or our capital cities, inequality increases. Again the SEIFA statistics are revealing and demonstrate a variety of advantage and disadvantage across States and Territories. For example, the administrative centre of the Lockyer Valley is situated at Gatton which is located in South East Queensland (SEQ) less than 100 km from the Brisbane GPO. Yet this local government area clearly demonstrates regional inequality in a range of areas including health, education, regional unemployment, regional development and infrastructure delivery. In the past our Mayor has referred to Lockyer Valley as “outer regional” as, while located in SEQ, she feels our region is very much “on the outer” when it comes to decision making at a National and State level – particularly in those areas of inequality listed above. This submission seeks redress to the long standing gaps in regional inequality for regions such as the Lockyer Valley - gaps that seem to be created at least in part by overlaps, or underlaps, in government responsibility, funding or programs of implementation. Lockyer Valley Region For the Committee’s benefit and by way of context, the Lockyer Valley is a modestly sized local government area in South East Queensland. The region is a key agricultural area for the State and country growing produce for domestic and international markets. The region also has significant manufacturing, construction and transport industries. Some relevant statistics include: • A population of just over 40,000 people and growing at about 1.8% per year • An expected population by 2036 approaching 60 000 people • A workforce with strong ties to agriculture, manufacturing, construction and transport • Unemployment at 7.0 % (State average 6.1%) 1 | P a g e Lockyer Valley Regional Council • 18.7% of families have children under 15 and no parent employed (State 13.8%) • Significantly lower median family income than the State and National averages • Tertiary education to a Bachelor level is 9.5% compared to the State average of 18.3% • Significant health issues exist with all social determinants of health and all health indicators worse than State averages. These statistics demonstrate clear levels of regional inequality. Many issues are at play in this context. Perhaps some are not within the capacity of government to address. However, one broad issue that the Committee may be able to address is the lack of clarity over funding and responsibility between Commonwealth and State levels of government for a range of policy areas. Once clarified, perhaps the overlaps and underlaps can start to be addressed. The responsibility distinctions are not well understood by the community – they just suffer the consequences. These responsibilities impact on communities in areas such as health, education, infrastructure and regional development and unemployment. These matters are discussed briefly below. Health The towns of Gatton and Laidley are both served by local hospitals. However, these hospitals do not conduct surgery and are only serviced by a small number and range of visiting specialists. All surgery, maternity services, most specialist consultations, and medical emergencies need to be dealt with through regional hospitals based at Toowoomba, Ipswich or Brisbane. These hospitals are considerable distances away and accordingly service levels are low. This situation is compounded by the absence of any meaningful public transport option. Combined with high unemployment, low wages, and ageing population this situation often renders services inaccessible, unattainable or unaffordable. This in turn leads to poor health outcomes for residents of this region. This assertion is supported by Medicare data indicating that residents of Gatton and Laidley report the costs of medical services and the difficulty of accessing services as barriers to obtaining health care at significantly higher rates than Queensland residents generally. For some time Council has been seeking government consideration of a regional hospital in the Plainland / Hatton Vale area (which has been, and will be, the fastest growing part of the region). Clearly smaller regions such as the Lockyer Valley cannot expect the full suite of specialist services and it is recognised that some services are likely to be only available at Brisbane hospitals for the foreseeable future. However, a regional hospital with basic specialties such as surgery and obstetrics should be achievable in a Lockyer Valley regional facility. This example of regional inequality is raised to highlight the lack of government planning, lack of funding assessment, and the lack of understanding/acknowledgment that this regional problem exists. This is despite apparent record spending in the Health portfolios of both National and State governments. Education Delivery of schools is largely a State matter – though again funding is a mix of National and State expenditure. It is not clear if this divide contributes again to the lack of cohesive planning and the poor outcomes found in regional educational facilities. As an example the Hatton Vale State School was relocated some years ago from its previous location on the Warrego Highway to a location with safer access. Unfortunately the school is 2 | P a g e Lockyer Valley Regional Council already outgrowing its location and capacity and will soon need an upgrade or another new school. This is despite clearly anticipated population growth. The Public High Schools in Laidley and Gatton are both catchment capped and at capacity, with significant waiting lists, yet little is known of plans for additional facilities or schools in the region. With crowding at schools and limited access, it is not surprising that the region has school completion levels lower than the State average and significant underrepresentation in tertiary education. Again this example is to highlight the apparent lack of coordination between State and National Governments. Regional Development The Committee will no doubt be aware of the recent Productivity Commission Study Report entitled Transitioning Regional Economies . The Productivity Commission findings and recommendations in this report are relevant in understanding regional inequality. A number of findings and recommendations are pertinent: • Finding 3.1 Many regions with low rates of employment growth have a large agricultural base. • Finding 3.6 Efficiencies and technological innovation are generating higher levels of agricultural production using less labour. This is driving a long term trend of lower employment in agricultural regions. There is also a pattern of consolidation from smaller towns to larger regional centres which affects the social fabric of these communities. • Finding 5.1 Significant benefits would arise from expediting regulatory reforms in land use planning and development, environmental, agriculture related regulation and occupational licensing. • Finding 5.2 (In part and relating to regional program funding) Failure to set out clear objectives, build capacity and adequately plan for new spending risks regional communities missing out on opportunities and taxpayers’ funds being squandered. • Finding 5.3 Strong and effective local leadership is critical in developing and implementing regional development plans. There is a case for State governments to build capacity in leadership in regional institutions and community groups to ensure the groups can attract skilled leaders. • Finding 5.4 (in part) Although all tiers of government have a shared interest in regional development, central responsibility for regional development best resides with State and Territory governments, supported by local governments. • Recommendation 5.2 (in part) Current discretionary funding allocated by the Australian Government specifically to regional development (such as funding for regional grant programs, City Deals and the Northern Australia Infrastructure Facility) should be subject to independent, rigorous and transparent evaluation. • Finding 5.5 (in part) As a regional development strategy, decentralisation is unlikely to make a long-term, systematic difference to regional growth and resilience. 3 | P a g e Lockyer Valley Regional Council • Finding 5.6 (in part) Past assistance to industries and regions has often been costly, ineffective, counterproductive, wasteful, poorly targeted
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